Wednesday, March 25, 2009

Detrendovy Oscillator

Formula

MA2 [PRICE - MA1 (PRICE)]

Performance

Above submitted a schedule 13-minute line for the composite index of NASDAQ (COMPX). In the lower part built Detrendovy oscillator using parameters specified below. Oscillator fluctuates around a zero line.

Options

. Price (price) - the price that is used as input for the calculation of MA1.
. MA1 - the type and period of smoothing used to smooth the original price.
. MA2 - type and period of smoothing used to smooth out the differential between the price and the MA1.
. Color Line (line color) - color and style of the final line of the oscillator.

Description

Detrendovy oscillator is the first calculation of the difference between "price" and a user-defined moving average of the "price". The used value of the price may be, of course, maximum, minimum, closing, opening, middle between the maximum and minimum or average of the maximum, minimum, and closure. Many outcome differentials, then smoothed out by another user defined moving average. The resulting oscillator fluctuates around zero. This indicator helps to identify situations where market instruments are traded on the extreme levels on its average price. Detrendovy oscillator can be used for previewing the markets, evaluate trading signals and received as an ordinary indicator.



Forex Magazine
based on www.linnsoft.com

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